GL/GLUT texture alpha problem

I am having a problem with my alpha in my textures. It was a bit more screwey than this, but I messed around a bit and this is what my textures look like where they should be transparent:
I know that the alpha in the textures works because earlier when I had a different problem (http://www.staronesw.com/temp/problem.gif) the stars in the background came through. My GL stuff is set up like this:

Judging by the screenshot, it looks like you're drawing things in the wrong order. In order for alpha blending to work correctly, you have to draw the objects in the scene in order of backmost to frontmost, relative to the viewer.

Alpha test basically says: if this condition is met, don't draw a pixel. The reason why you can see thru fully transparent areas but without blending on the edges is that the edges (and the inside) are drawn before the background, and the depth buffer too, so when you want to draw something behind it, the depth buffer will filter it because it is behind!